Dear All,
I worked in a company for 5 years and 2 months. When I was working there, they deducted 4% of my basic salary for 'Gratuity'. The company maintains the 'Gratuity' fund in LIC. I resigned from the company one year ago, and until now, I haven't received my Gratuity settlement cheque.
Generally, how long does it take to receive the Gratuity amount from the resignation date? Can anyone help me with how to claim it from my previous company?
Thanks in advance,
V. Selvam
From United States, New York
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1I worked in a company for 5 years and 2 months. When I was working there, they deducted 4% of my basic salary for 'Gratuity'. The company maintains the 'Gratuity' fund in LIC. I resigned from the company one year ago, and until now, I haven't received my Gratuity settlement cheque.
Generally, how long does it take to receive the Gratuity amount from the resignation date? Can anyone help me with how to claim it from my previous company?
Thanks in advance,
V. Selvam
From United States, New York
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Dear Friend,
The gratuity is to be settled within 30 days from the date of application made for the purpose or not. The relevant portion of the Payment of Gratuity Act is supplied below:
"The Payment of Gratuity Act, 1972
Section 7 of the Payment of Gratuity Act deals with the subject you require, i.e., DETERMINATION OF THE AMOUNT OF GRATUITY. (1) A person eligible for payment of gratuity under this Act or any person authorized, in writing, to act on his behalf shall send a written application to the employer, within such time and in such form, as may be prescribed, for payment of such gratuity. (Have you applied for it?)
(2) As soon as gratuity becomes payable, the employer shall, whether an application referred to in subsection (1) has been made or not, determine the amount of gratuity and give notice in writing to the person to whom the gratuity is payable and also to the controlling authority specifying the amount of gratuity so determined.
(3) The employer shall arrange to pay the amount of gratuity within thirty days from the date it becomes payable to the person to whom the gratuity is payable."
If you have not received the gratuity amount, you may have to adopt the following and proceed legally to get your gratuity. Before that, it is advisable to issue a Lawyer's notice to your employer:
"(3A) If the amount of gratuity payable under subsection (3) is not paid by the employer within the period specified in subsection (3), the employer shall pay, from the date on which the gratuity becomes payable to the date on which it is paid, simple interest at such rate, not exceeding the rate notified by the Central Government from time to time for repayment of long-term deposits, as that Government may, by notification, specify: Provided that no such interest shall be payable if the delay in the payment is due to the fault of the employee and the employer has obtained permission in writing from the controlling authority for the delayed payment on this ground.
(4) (a) If there is any dispute as to the amount of gratuity payable to an employee under this Act or as to the admissibility of any claim of, or in relation to, an employee for payment of gratuity, or as to the person entitled to receive the gratuity, the employer shall deposit with the controlling authority such amount as he admits to be payable by him as gratuity.
(b) Where there is a dispute concerning any matter specified in clause (a), the employer, employee, or any other person raising the dispute may make an application to the controlling authority for deciding the dispute.
(c) The controlling authority shall, after due inquiry and after giving the parties to the dispute a reasonable opportunity of being heard, determine the matter in dispute. If any amount is found to be payable to the employee, the controlling authority shall direct the employer to pay such amount.
(d) The controlling authority shall pay the amount deposited, including the excess amount, if any, to the person entitled thereto.
(e) As soon as a deposit is made under clause (a), the controlling authority shall pay the amount of the deposit to the applicant where he is the employee or, where the applicant is not the employee, to the nominee or the guardian of such nominee or heir of the employee if the controlling authority is satisfied that there is no dispute as to the right of the applicant to receive the gratuity.
(5) For the purpose of conducting an inquiry under subsection (4), the controlling authority shall have the same powers as a court under the Code of Civil Procedure, 1908.
(6) Any inquiry under this section shall be a judicial proceeding within the meaning of the Indian Penal Code, 1860.
(7) Any person aggrieved by an order under subsection (4) may, within sixty days, prefer an appeal to the appropriate Government or such other authority specified by the appropriate Government. The appellant may extend the appeal period by a further sixty days if prevented by sufficient cause from preferring the appeal within the initial sixty days.
(8) The appropriate Government or the appellate authority may confirm, modify, or reverse the decision of the controlling authority after giving the parties a reasonable opportunity of being heard."
Hope this will serve your purpose.
Yagniah
Manager (P&A)
Yagniah@yahoo.co.in
From India, Hyderabad
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The gratuity is to be settled within 30 days from the date of application made for the purpose or not. The relevant portion of the Payment of Gratuity Act is supplied below:
"The Payment of Gratuity Act, 1972
Section 7 of the Payment of Gratuity Act deals with the subject you require, i.e., DETERMINATION OF THE AMOUNT OF GRATUITY. (1) A person eligible for payment of gratuity under this Act or any person authorized, in writing, to act on his behalf shall send a written application to the employer, within such time and in such form, as may be prescribed, for payment of such gratuity. (Have you applied for it?)
(2) As soon as gratuity becomes payable, the employer shall, whether an application referred to in subsection (1) has been made or not, determine the amount of gratuity and give notice in writing to the person to whom the gratuity is payable and also to the controlling authority specifying the amount of gratuity so determined.
(3) The employer shall arrange to pay the amount of gratuity within thirty days from the date it becomes payable to the person to whom the gratuity is payable."
If you have not received the gratuity amount, you may have to adopt the following and proceed legally to get your gratuity. Before that, it is advisable to issue a Lawyer's notice to your employer:
"(3A) If the amount of gratuity payable under subsection (3) is not paid by the employer within the period specified in subsection (3), the employer shall pay, from the date on which the gratuity becomes payable to the date on which it is paid, simple interest at such rate, not exceeding the rate notified by the Central Government from time to time for repayment of long-term deposits, as that Government may, by notification, specify: Provided that no such interest shall be payable if the delay in the payment is due to the fault of the employee and the employer has obtained permission in writing from the controlling authority for the delayed payment on this ground.
(4) (a) If there is any dispute as to the amount of gratuity payable to an employee under this Act or as to the admissibility of any claim of, or in relation to, an employee for payment of gratuity, or as to the person entitled to receive the gratuity, the employer shall deposit with the controlling authority such amount as he admits to be payable by him as gratuity.
(b) Where there is a dispute concerning any matter specified in clause (a), the employer, employee, or any other person raising the dispute may make an application to the controlling authority for deciding the dispute.
(c) The controlling authority shall, after due inquiry and after giving the parties to the dispute a reasonable opportunity of being heard, determine the matter in dispute. If any amount is found to be payable to the employee, the controlling authority shall direct the employer to pay such amount.
(d) The controlling authority shall pay the amount deposited, including the excess amount, if any, to the person entitled thereto.
(e) As soon as a deposit is made under clause (a), the controlling authority shall pay the amount of the deposit to the applicant where he is the employee or, where the applicant is not the employee, to the nominee or the guardian of such nominee or heir of the employee if the controlling authority is satisfied that there is no dispute as to the right of the applicant to receive the gratuity.
(5) For the purpose of conducting an inquiry under subsection (4), the controlling authority shall have the same powers as a court under the Code of Civil Procedure, 1908.
(6) Any inquiry under this section shall be a judicial proceeding within the meaning of the Indian Penal Code, 1860.
(7) Any person aggrieved by an order under subsection (4) may, within sixty days, prefer an appeal to the appropriate Government or such other authority specified by the appropriate Government. The appellant may extend the appeal period by a further sixty days if prevented by sufficient cause from preferring the appeal within the initial sixty days.
(8) The appropriate Government or the appellate authority may confirm, modify, or reverse the decision of the controlling authority after giving the parties a reasonable opportunity of being heard."
Hope this will serve your purpose.
Yagniah
Manager (P&A)
Yagniah@yahoo.co.in
From India, Hyderabad
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The deductions made by your employer from your salary towards Gratuity are improper and illegal. It also defies all logic. How would they address a situation where, say, an employee leaves the company after working for, say, three years?
Regards,
Vasant Nair
From India, Mumbai
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Regards,
Vasant Nair
From India, Mumbai
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Payment of Gratuity Act, 1972 & The Rules.ppt
THE PAYMENT OF GRATUITY ACT 1972.doc